08/18 – ETF Trading – SPY, SDS, FXI, FXP

The market rebounded yesterday, generating several short etf trading opportunities. Consider taking a short trading position in SPY or FXI should either etf close higher today.

If you’re unable to short SPY or FXI, take a long trading position in the inverse etfs – SDS or FXP. However, follow the etf trading signals for SPY and FXI. SDS and FXP are double inverse etfs – please trade carefully.

SPY – The SPDR® S&P 500® ETF is a fund that, before expenses, generally corresponds to the price and yield performance of the S&P 500 Index.

SDS – ProShares UltraShort S&P500 seeks daily investment results, before fees and expenses, that correspond to twice (200%) the inverse (opposite) of the daily performance of the S&P500® Index.

FXI – The iShares FTSE/Xinhua China 25 Index Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the FTSE/Xinhua China 25 Index.

FXP – ProShares UltraShort FTSE/Xinhua China 25 seeks daily investment results, before fees and expenses, that correspond to twice (200%) the inverse (opposite) of the daily performance of the FTSE/Xinhua China 25 Index.

We may take up to 3 trading positions over the next couple of days. Our first position is 1/6 of our total trading amount. Our second position is 1/3 of our total trading amount. Our third trading position is 1/2 of our total trading amount. You could also take positions in a 20-30-50 ratio.

All trades are at the market close. Please trade responsibly.

Assuming we get into the trade, our exit signals (for both SPY and FXI) are triggered when the closing price for either is lower than it’s MA(5), or – for a potentially larger gain – when the RSI(2) is less than 30. Exit the leveraged trades on these signals, too.

Learn why SPY and FXI are now good short etf trading opportunities in the book by Larry Connors: High Probability ETF Trading. His etf trading strategies have only a few rules and you’ll be able to back-test and apply the strategies to the next trading day. With easy to follow trading strategies, clear explanations, and years of tested results, there is no better place to start finding new trading edges than in High Probability ETF Trading. Get your copy today and be ready for the next trading session.

Disclaimer:The content on this site is provided as general information only and should not be taken as investment advice. All site content, including advertisements, shall not be construed as a recommendation to buy or sell any security or financial instrument, or to participate in any particular trading or investment strategy. The ideas expressed on this site are solely the opinions of the author(s) and do not necessarily represent the opinions of sponsors or firms affiliated with the author(s). The author may or may not have a position in any company or advertiser referenced above. Any action that you take as a result of information, analysis, or advertisement on this site is ultimately your responsibility. Consult your investment adviser before making any investment decisions.

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